S&P<\/a> is \u201cactually creating a smart contract token that contains all of the index data,\u201d so that clients receive \u201ca smart contract containing the index data but also explicitly having licensing and fees and access control all embedded into a smart contract.\u201d She framed it as \u201cmore about a distribution play rather than a data play,\u201d delivering the full index product on-chain.<\/p>\nDrinkwater said choosing iBoxx was a \u201ctotal no-brainer\u201d because with DTCC putting U.S. Treasuries on Canton, \u201cyou have the underlying\u201d and \u201ca very active kind of treasury institutional trade landscape on Canton\u201d plus \u201creal demand for the iBoxx Treasury index to be used as a underlying for product issuance on the Canton chain.\u201d<\/p>\n
On-chain IP and data-as-asset<\/h2>\n
For S&P, tokenizing indices as full IP products changes how licensing and economics work. Drinkwater argued that \u201cone of the great advantages for an IP issuer like ourselves on chain is we actually have better auditability, visibility in how IP is being used, reporting on that use case and\u2026 instantaneous reporting and potentially commercial exchange based on that smart contract.\u201d In traditional markets, he noted, S&P is \u201cdependent on delayed reporting on volumes,\u201d often disputed, followed by \u201cmultiple months on contract settlement,\u201d whereas on chain \u201cthe whole timeline pulls in quite considerably\u201d with \u201cfar less opportunity for dispute.\u201d<\/p>\n
Soubiran linked this to a broader shift: \u201cthe more we bring capital markets applications on chain, the more we bring data on chain, especially private and IP protected data, the more we need to treat data like a financial asset.\u201d Blockchain infrastructure, she said, enables \u201ctraceability of data and treat data like a financial asset and trace where that data goes,\u201d which is \u201cgreat from a IP protection standpoint\u201d and for \u201cprogrammatically\u201d managing monetization of IP in financial products.<\/p>\n
Drawing on Kaiko\u2019s own index business, she noted that many index fee arrangements are tied to AUM and turnover, with end-of-year reconciliations still \u201cquite heavily manual.\u201d Moving indices on-chain allows firms to \u201con chain verify what is the AUM related to the financial product that is linked to your index or your benchmark\u201d and enable \u201cdaily fee collection based on daily turnover.\u201d It is, she said, \u201cnot necessarily a novel product, it\u2019s just a novel way of distributing\u201d existing benchmarks.<\/p>\n
Composability, evergreen contracts and Canton<\/h2>\n
Both speakers highlighted composability as a key benefit of this design. \u201cThe idea of tokenizing an index is for product issuers\u2026 to consume that index product natively on chain and wrap it into a index-linked financial product,\u201d Soubiran explained, calling the application of composability to data products \u201cextremely new and powerful.\u201d<\/p>\n
Drinkwater described the structure as layered: \u201cyou can think of the token being the index and then the smart contract being wrapped around it and that\u2019s the use case, the use case specific terms and conditions, audit rights, etc.\u201d That wrapper \u201ccan be tailored to whatever use case clients come to us for, but then it\u2019s repeatedly usable. It\u2019s evergreen. It\u2019s on chain.\u201d Compared with today\u2019s model, where \u201cclients have to come to us for every use case, it\u2019s a new schedule on their MSA,\u201d he said this offers \u201ca very frictionless process of getting new product issued on chain, massively speeding up timelines,\u201d and a \u201creusable infrastructure that really benefits all parties.\u201d<\/p>\n
On why Canton matters, Drinkwater pointed to its ability to straddle public and private workflows. On fully public chains like Ethereum, \u201cthat reporting is going to be public,\u201d which does not fit \u201ca lot of our use cases\u201d such as \u201cprivate exchange swaps\u2026 between institutions and they don\u2019t want that public.\u201d Canton\u2019s setup, he said, lets reporting be \u201cprivate when it needs to be private, public where it can be public, but back to us nonetheless,\u201d unifying reporting across use cases in a way that \u201cin TradFi is not the case.\u201d<\/p>\n
<\/p>\n
Soubiran framed the broader aim as servicing \u201calmost a new addressable market that is your existing clients moving to an infrastructure that is programmatic and a little bit more disintermediated,\u201d stressing that \u201ca lot of great things exist in our current financial system,\u201d but that the opportunity lies in \u201cmaking things more automated\u2026 more programmatic in the transfer of information, the transfer of data.\u201d<\/p>\n
S&P\u2019s broader digital roadmap<\/h2>\n
Drinkwater placed the Kaiko and Canton partnership within S&P\u2019s longer digital asset strategy. He recalled that SPY \u201cwas not SPY for the first decade of its life, but it flag planted,\u201d and said S&P understands \u201cthe power of moving first and establishing real use cases in new technology.\u201d With a brand \u201cknown and trusted by institutions and retail alike,\u201d S&P wants \u201cto move first and early when we have conviction in new products and new technologies because we need our brand to be firmly planted there as an established entity.\u201d<\/p>\n
Over the last year, he said, S&P has \u201cvery selectively\u201d chosen \u201chigh quality players as partners and putting IP on chain where we saw very discrete and tangible use cases,\u201d citing the on-chain S&P 500 token with Centrifuge and the Digital Markets 50 index with Genari that bundles blockchain-exposed equities and cryptocurrencies in a structure \u201chard to replicate in TradFi.\u201d Even so, he signaled he is \u201cmost excited about the innovation that we\u2019re pushing today\u201d with tokens wrapped in smart contracts that are \u201ctailored to use cases, but extensible and evergreen on chain,\u201d because this \u201cunlocks so many use cases and scalability of our IP.\u201d<\/p>\n
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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"At Kaiko\u2019s Cannes conference, S&P DJI and Kaiko unveiled plans to tokenize the iBoxx U.S. Treasury index on Canton, turning it into programmable on-chain IP. Summary iBoxx U.S. Treasuries is being brought natively on Canton alongside DTCC\u2019s on-chain Treasuries to support index-linked product issuance on the same infrastructure. S&P will distribute the index as a […]<\/p>\n","protected":false},"author":5,"featured_media":18888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[23],"tags":[],"kronos_expire_date":[],"class_list":["post-18887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/18887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=18887"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/18887\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/18888"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=18887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=18887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=18887"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=18887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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